The Financial Services and the Treasury Bureau of Hong Kong released the "Policy Statement on the Development of Virtual Assets in Hong Kong" a year ago. The Securities and Futures Commission of Hong Kong has "incorporated" several virtual asset exchanges. What are the backgrounds, origins, and business scopes of these exchanges? Let's explore together.

Author: Meta Era invited author "Shark"

In October 2022, the Financial Services and the Treasury Bureau of Hong Kong released the "Policy Statement on the Development of Virtual Assets in Hong Kong," which clearly stated that virtual asset exchanges would be licensed through a "choose to participate" approach, allowing them to reach more investors in the Hong Kong market. The licensing system enables virtual asset exchanges to explore new distribution channels in Hong Kong, benefiting the vast asset and wealth management market in Hong Kong, valued at over 4.5 trillion USD.

Furthermore, the Financial Services and the Treasury Bureau of Hong Kong also stated its "willingness" to engage with the global virtual asset industry, inviting relevant exchanges to explore business opportunities in Hong Kong. The Securities and Futures Commission of Hong Kong will conduct public consultations on the appropriate level of retail investor trading of virtual assets under the new licensing system. So, a year has passed, and the Securities and Futures Commission of Hong Kong has "incorporated" several virtual asset exchanges. What are the backgrounds, origins, and business scopes of these exchanges? Let's explore together.

In fact, the Securities and Futures Commission of Hong Kong has already published multiple lists of licensed and pending virtual asset trading platforms on its official website as of September 29. Currently, it "covers" a total of 8 exchanges - 2 licensed and 5 pending.

(Note: The information in the table was obtained on October 16, 2023)

First, let's take a look at the 2 licensed virtual asset trading platforms. These 2 are OSL Digital Securities Limited under BC Technology Group and Hash Blockchain Limited under HashKey Group.

(Image source: Official website of the Securities and Futures Commission of Hong Kong)

For companies seeking to obtain a cryptocurrency license in Hong Kong, HashKey Exchange and OSL Exchange are exactly what they need - an instantly updated "manual." As the first batch of companies to obtain cryptocurrency licenses in Hong Kong, they are attracting widespread attention and moving forward with the increasingly perfected cryptocurrency policies in Hong Kong.

They are not only the leaders in the development of cryptocurrency in Hong Kong but also the first beneficiaries of the opening of virtual asset trading in Hong Kong. Next, let's take a closer look at the actual situation of these two virtual asset trading platforms.

1. HashKey Exchange

Platform Overview: HashKey Exchange, operated by Hash Blockchain Limited, is headquartered in Hong Kong. As a compliant digital asset trading platform operator, it holds a Type 1 (securities trading) and Type 7 (providing automated trading services) license issued by the Securities and Futures Commission of Hong Kong. HashKey Exchange has also obtained ISO 27001 information security management system certification and ISO 27701 privacy information management system certification.

Key Member Background: According to publicly available information, HashKey Exchange is a trading platform under HashKey Group, whose chairman is Dr. Xiao Feng, founder of Wanxiang Blockchain Lab. Dr. Xiao Feng previously served as the head and deputy head of the Securities Management Department of the Shenzhen Economic Special Zone Branch of the People's Bank of China, as well as deputy director and director of the Shenzhen Securities Management Office and deputy director of the Regulatory Office. In 2018, he officially established HashKey Group to transform into digital asset financial services. Wanxiang Blockchain Lab itself has also invested in multiple blockchain projects, such as Ethereum, ConsenSys, Polkadot, and MakerDAO.

Another core team member of HashKey Exchange is Weng Xiaoqi, former Vice President of Public Relations at Huobi, who currently serves as COO of HashKey Exchange and Assistant to the Chairman of HashKey Group. In addition, the official website of HashKey Group shows that its tokenization general manager is Liu Jia, who previously served as the group's legal counsel and worked for Tencent, the U.S. Sidley Austin LLP, and Beijing Guofeng Law Firm for many years, with a primary practice area in private equity and investment funds, cross-border investment and mergers and acquisitions, and domestic and foreign capital markets.

Cryptocurrency Business Scope: According to the HashKey Exchange website, it currently provides services for four types of trading pairs: USD, HKD, USDT, and USDC. In addition to BTC and ETH trading services, HashKey also launched the AVAX/USD trading pair on September 28. Furthermore, HashKey Exchange currently supports bank transfer services in 17 countries and regions, including Singapore, the United States, and Israel. Withdrawal users must ensure that the bank account opened in their name is in a qualified jurisdiction allowed by the Securities and Futures Commission.

2. OSL Exchange

Platform Overview: OSL is supported by BC Technology Group (863.HK), a financial technology and digital asset company. In addition to brokerage, custody, and exchange, it also provides comprehensive services such as "software as a service."

Key Member Background: Hu Zhenbang, CFO of BC Technology, has over 16 years of experience in finance and has worked for several enterprises, including listed technology companies in Hong Kong, investment banks, and the Big Four accounting firms. Diao Jiajun, Head of Regulatory Affairs, previously served as Group General Counsel of Yunfeng Financial Group Limited (listed on the Main Board of the Stock Exchange of Hong Kong Limited) and Head of Legal and Compliance for Cantor Fitzgerald and BGC Partners in Asia. He was appointed as an executive director of BC Technology Group Limited on July 11, 2019.

Cryptocurrency Business Scope: OSL, holding Type 1 and Type 7 licenses, provides comprehensive services including brokerage, custody, exchange, and "software as a service." In September of this year, OSL announced that its custody and automated trading services (ATS) had passed the authoritative SOC 2 Type 2 service qualification audit, focusing on Hong Kong security token business, while also supporting BTC and ETH trading. Its primary service targets are institutional and professional investors.

Next, there are 5 virtual asset trading platforms currently applying for licenses:

3. BGE

Platform Overview: BGE was established in 2021 and is a wholly-owned subsidiary of HKE Holdings, a listed company. HKBGE wholly owns HKBGE TSP Limited, which obtained a TCSP license (trust or company service provider license) in September 2021 under AMLO, providing virtual asset custody services for HKBGE's trading platform. BGE has been preparing since 2022 and has applied for a VATP license.

Key Member Background: On February 1, 2023, Ouyang Jiannan, one of the founding members of HashKey Group, was appointed as the director and CEO of HKBGE. Thor Chan, former CEO and co-founder of the cryptocurrency exchange AAX, is currently the CEO. In addition, HKBGE currently has only two directors, Ouyang Jinpei and Ji Dana, who are responsible for company operations and business development. The company's website is currently only open to invited professional investors.

Cryptocurrency Business Scope: The BGE website currently shows that it is not in formal use and displays messages such as "in trial operation" and "looking forward to formal opening."

4. HKbitEX

Platform Overview: HKBitEX was established in 2019 and is also one of the "first batch of VATP applicants," providing digital asset trading services primarily to professional and institutional investors.

Key Member Background: The HKBitEX website shows that the company's executives have strong backgrounds. It is reported that their Chief Development Director, Shi Lin, was the Joint Director of the Hong Kong Listing Review Group before 2020 but resigned in July 2021. Another key figure is the founder of HKBitEX, Gao Han, who previously worked at the Hong Kong Stock Exchange and was involved in Stock Connect and Bond Connect. The platform also has several former employees of the Hong Kong Stock Exchange, and Gao Han also serves as the Chairman of Tai Chi Capital Group, to which HKBitEX's virtual asset trading business belongs. Tai Chi Capital previously announced the issuance of the first real estate fund token securities for professional investors (STO) and is the first fund tokenization fundraising model approved by the Securities and Futures Commission of Hong Kong.

Cryptocurrency Business Scope: According to the official HKBitEX website, it currently mainly provides USD and USDT trading pairs for BTC and ETH. Additionally, the exchange also supports over-the-counter trading and digital asset custody services.

5. HKVAX

Platform Overview: HKVAX, also known as "Hong Kong Virtual Asset Exchange" in Chinese, was announced on August 11 to have received a preliminary approval notice from the Securities and Futures Commission, allowing it to conduct regulated activities of Type 1 and Type 7. Its core products are expected to include over-the-counter (OTC) brokerage services, institutional-grade trading platforms, and 100% guaranteed custody services. However, it is not currently listed on the licensed list.

Key Member Background: The HKVAX website shows that the company has 3 co-founders. The CEO, Wu Weiliang, previously served as the Managing Director of the International Department of CITIC Futures and is currently the Vice Chairman of the Financial and Treasury Services Committee of the Hong Kong General Chamber of Commerce (HKGCC). Another co-founder and COO, Huo Zhaoliang, is a qualified accountant registered with the Hong Kong Institute of Certified Public Accountants and is the representative of the tax examination scoring team of the Hong Kong Institute of Certified Public Accountants. The third co-founder and CTO, Liu Cheng, comes from Alibaba and Ant Group and has achieved outstanding performance in blockchain technology and digital currencies.

Cryptocurrency Business Scope: HKVAX currently provides over-the-counter trading services covering the globe 24/7 for institutional and professional investors. It also has a virtual asset trading platform and corresponding virtual asset custody services (obtained a TCSP license in the second quarter of this year).

6. VDX

Platform Overview: VDX is a company under the well-established local securities firm, Victory Securities, in Hong Kong. In February of this year, Victory Securities announced that the Securities and Futures Commission of Hong Kong had accepted the application for a license to conduct regulated activities of Type 1 and Type 7 by Victory Digital Technology Limited (a joint venture company under the group).

Key Member Background: The executive directors of Victory Digital Technology include Gao Juan, Chairman of the Hong Kong Securities Association. Victory Securities was founded by Dr. Gao Detai, who has received the World Outstanding Chinese Award and is known as the "Golden Broker." The company is also a qualified foreign institutional investor (QFII) recognized by the China Securities Regulatory Commission.

Cryptocurrency Business Scope: VDX provides digital asset custody services and is audited regularly by the Big Four accounting firms. In addition, it offers customized solutions in compliance, trading, regulation, finance, and risk reporting to financial institutions and individual professional clients.

7. Meex

Platform Overview: Meex, established in Hong Kong and supported by a local consortium, is currently operational and is preparing to apply for Type 1, Type 7, and VASP licenses from the Securities and Futures Commission of Hong Kong with the assistance of the law firm JunHe. Meex is also an official member of the Hong Kong Web3 Association.

Key Member Background: Simon Wu, Co-CEO and co-founder of MEEX, is a well-known expert in virtual asset security technology. The technical team is from the core technical team of leading global virtual asset trading platforms. The management team includes executives of companies with Type 1, 4, and 9 licenses from the Securities and Futures Commission of Hong Kong, executives in the virtual asset industry, and licensed lawyers in Hong Kong with experience in virtual assets and compliance with Hong Kong financial institutions. However, there is limited public information available about the other co-founder, Kiki Kwok, and Co-CEO Jason Feng.

Cryptocurrency Business Scope: Meex currently supports cryptocurrency spot trading, but only offers USD trading pairs for BTC and ETH. Its app is available on the Apple App Store and Google Play. Additionally, Meex provides cryptocurrency storage services, but all services are only open to legal residents over 18 years old with valid identification from unrestricted areas.

Conclusion

Since the end of 2022, Hong Kong has proclaimed its embrace of virtual assets and the establishment of the world's virtual asset center. The Hong Kong government has made a series of arrangements in regulatory standards. Overall, Hong Kong's current virtual asset regulatory framework largely incorporates virtual assets into a "licensing" financial regulatory system.

The recent JEPX case's exposure is the catalyst for the latest regulatory optimization measures announced by the Securities and Futures Commission of Hong Kong. However, with a series of rapid responses and measures by the commission, Hong Kong's Web3.0 market is moving towards maturity, and both regulation and industry self-discipline are further strengthening.

Even though this gradually compliant path is full of obstacles, an ancient saying has already given us the proverb for progress - "The road ahead is long and far, I will seek and explore." We are already on the road, and these are the challenges we will eventually overcome.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。